Allied acquires Montreal office, retail space

Allied acquires Montreal office, retail space

Allied Properties REIT (AP.UN-T) has entered into agreements to acquire the following office and retail properties in downtown Montréal, totalling more than one million square feet, for $218 million: Le Nordelec Rental; Le Nordelec Development; 740 St-Maurice Street; 480 St-Laurent Blvd.; 3510 St-Laurent Blvd.; and 8 Place du Commerce.

Marketwired – Bloomberg

Developers buy TO waterfront lands

Toronto’s waterfront lands on Queen’s Quay have been sold for $260 million to developers Menkes, Greystone Managed Investments and Triovest Realty Advisors, with a new LCBO store to be built in the base of an office tower. The deal will close early this summer, with most of the proceeds going toward transit and transportation infrastructure projects now underway.

Toronto Star

Crombie REIT buys Oakville shopping centre

Crombie REIT (CRR.UN-T) is the new owner of Oakville’s Bronte Village Mall. REIT CFO Glenn Hynes wouldn’t disclose how much the Oakville property costs. but confirmed the deal closed earlier this week. He also wasn’t in a position to speak about any development plans the New Glasgow, N.S.-headquartered REIT may have for the property.

InsideHalton.com

Ottawa’s Emerald Plaza has a new owner

Ottawa’s mixed-use Emerald Plaza has changed hands for $26.1 million through the assistance of Primecorp Commercial Realty Inc. “Parties to the deal would prefer us not releasing detail as to who they are,” said Primecorp chief operating officer and founding and managing partner Sam Firestone.

Property Biz Canada

Devcore attacks NCC choice of RendezVous LeBreton

The runner-up in the competition to redevelop LeBreton Flats is aggressively challenging the National Capital Commission‘s choice of the RendezVous LeBreton Group as the top-ranked proponent. In an email to the NCC late Tuesday, Debbie Bellinger, the lawyer for the Devcore Canderel DLS Group, raised a series of objections to last week’s decision by the NCC board.

Ottawa Citizen – CBC News – Canada Newswire – Ottawa Citizen

Ontario school boards will need to pay developer prices

Ontario school boards wanting to buy properties from other boards will be forced to pay as much as private developers in some areas under new provincial rules causing divisions in the education sector. The Globe and Mail has learned a change to a regulation was to be brought in on Friday that will make a big difference to boards in places where public land is scarce, such as Toronto and Ottawa.

Globe and Mail

SpruceLand completes CRE sale

SpruceLand Properties Inc. announced it has closed the previously announced sale of the bulk of its portfolio of commercial properties for an aggregate sale price of $45.8 million. The commercial properties disposition included 10 wholly owned properties and the corporation’s 50 per cent interest in two jointly owned properties.

Canada Newswire

Kim Saunders first Canadian BOMA Fellow

Newfoundland and Labrador’s Kim Saunders is the first non-American to be named a BOMA Fellow by Building Owners and Managers Association (BOMA) International. 

Property Biz Canada

Women hold few leadership roles in CRE firms

There aren’t enough women running commercial real estate firms, leading projects and making deals. Women are dramatically under-represented in executive and senior leadership positions in the industry, and even less present as advisers and brokers, according to recent institutional research and interviews with several prominent women in the local and national commercial real estate industry.

Vancouver Province

Vancouver farmers’ land growth limited by mansions

Jordan Maynard, like many young farmers in the Lower Mainland, is hungry for more land to grow crops and raise livestock. But the manager at Southlands Heritage Farm can’t convince any of the property owners in Vancouver’s tiny agricultural zone of Southlands to lease him anything. They prefer privacy around their increasingly opulent mansions.

Globe and Mail

Calgary’s Discover Real Estate closing up shop

The owner of Discover Real Estate is blaming the faltering economy for forcing the closure of his business, one of the largest real estate brokerages in Alberta. Graham Mayne sent an email to Discover’s approximately 400 real estate agents, informing them the brokerage — which has offices in Calgary, Edmonton, Red Deer, and Strathmore — would be shutting down.

Calgary Herald

Manulife offers higher dividends in Singapore IPO

Manulife Financial Corp., (MFC-T) will seek as much as $470 million US in its second attempt at a Singapore initial public offering of its U.S. properties as it tries to entice investors with dividend yields higher than some of its peers. Manulife U.S. REIT is backed by three office buildings in Los Angeles and Atlanta/

Bloomberg

Starlight Funds appoints Liddell CFO

Starlight U.S. Multi-Family Core Fund (UMF.A-X), Starlight U.S. Multi-Family (No. 2) Core Fund (SUD.A-X),  Starlight U.S. Multi-Family (No. 3) Core Fund (SUS.A-X) and Starlight U.S. Multi-Family (No. 4) Core Fund (SUF.A-X) announced Martin Liddell has been appointed by the Board of Directors of each fund as chief financial officer to replace Tamara Lawson effective immediately.

Canada Newswire – Canada Newswire

U.S. CRE value appreciation grinding ‘to a halt’: Green Street

U.S. commercial real estate values, which have steadily risen over the past six years to eclipse their pre-recession peaks, have “come to a halt,” according to Green Street Advisors’ latest report, which also found upside remains for “quality” buildings in core markets. Green Street’s Commercial Property Price Index was unchanged in April.

The Real Deal – National Real Estate Investor

Subway revenue drops as it closes U.S. restaurants

Subway Restaurants revenue fell in 2015 for the second straight year, a sign one of the fast-food industry’s stalwarts is losing ground to newer chains. Revenue dropped 4.3 per cent to $1.11 billion US last year. Subway owner Doctor’s Associates Inc. also is slowing its pace of new restaurant openings and shuttering hundreds of underperforming locations.

Bloomberg

Economic fallout could be huge

From floods to wildfires to ice storms, natural disasters have a history of large-scale economic fallout in Canada. Economists say it is too early to tell just how much the fire could hurt the economy, but looking at past natural disasters can give some scope. Sadly, officials conceded Thursday they are no match for the blaze. Only rain can turn the corner.

Financial Post – Globe and Mail – Globe and Mail – Globe and Mail

Insurers brace for wave of Fort Mac claims

Insurance companies are setting up temporary claims hubs and sending additional staff to Alberta as wildfires in Fort McMurray destroyed property in what could become one of the country’s costliest natural disasters. Intact Financial Corp. (IFC-T), Canada’s largest property and casualty insurer, has sent staff to the region and increased the capacity of its phone lines.

Globe and Mail – Calgary Herald

Temple’s Fort McMurray properties evacuated

Temple Hotels Inc. (TPH-T) continues to monitor the wildfires in the Fort McMurray area. Temple properties have been evacuated safely and will remain closed until relevant authorities determine it is safe to allow staff and guests to return. At this time, it is not known if any of Temple’s properties have been affected.

Canada Newswire – Reuters

Retailers come to aid of Fort McMurray residents

* The Home Depot Canada, (HD-N), Canada Newswire 

* Loblaw Companies Ltd., (L-T), Canada Newswire  

* Sobeys Inc., (EMP.A-T), Canada Newswire, Canada Newswire 

* Walmart Canada, (WMT-N), Canada Newswire

Featured Column

Saskatoon approves growth plan to half a million

After much consultation with the public and their own administration, the City of Saskatoon approved its official Growth Plan to Half a Million last week during a regularly scheduled council meeting.

Read more

Market Trends and Research

Canadian building permits fall in March

Canadian building permits issued in March fell by 7.0 per cent as construction intentions in oil-producing Alberta dropped following a big jump in February, Statistics Canada said Thursday. Nationwide, the overall value of non-residential permits fell by 22.8 per cent on lower construction intentions for recreational facilities, retail complexes, schools and industrial buildings. 

Reuters

Real Estate Companies

Dalian Wanda partners on Chicago high-rise

China’s biggest commercial property company, Dalian Wanda, and a Chicago real estate developer have announced they will build a $1.16 billion Cdn skyscraper, the largest-ever real estate investment by a Chinese company in Chicago. Builders will break ground this summer on the Vista Tower, a 95-storey condominium and hotel complex that will be Chicago’s third-largest skyscraper.

Commercial Real Estate

REOC Financial Reports

Latest first-quarter reports:

* AutoCanada Inc., (ACQ-T), Canada Newswire     

* Firm Capital Property Trust, (FCD.UN-X), Canada Newswire     

* Romspen Mortgage Investment Fund, Canada Newswire     

* SNC-Lavalin Group Inc., (SNC-T), Canada Newswire    

REIT Financial Reports

Latest first-quarter reports:

* Allied Properties REIT, (AP.UN-T), Marketwired

* Artis REIT, (AX.UN-T), Canada Newswire  

* CREIT, (REF.UN-T), Marketwired  

* City Office REIT, (CIO-N), PR Newswire     

* Cominar REIT, (CUF.UN-T), Canada Newswire    

* Crombie REIT, (CRR.UN-T), Canada Newswire 

* Dream Global REIT, (DRG.UN-T), Marketwired 

* Dream Office REIT, (D.UN-T), Marketwired    

* Granite REIT, (GRT.UN-T), PR Newswire

* InterRent REIT, (IIP.UN-T), Marketwired  

* Melcor REIT, (MR.UN-T), Marketwired    

* Morguard REIT, (MRT.UN-T), Canada Newswire

* Northview Apartment REIT, (NVU.UN-T), Marketwired  

* Partners REIT, (PAR.UN-T), Marketwired            

* RioCan REIT, (REI.UN-T), Marketwired         

* Slate Office REIT, (SOT.UN-T), Marketwired      

* True North Commercial REIT, (TNT.UN-T), Canada Newswire

Real Estate Investment Trusts

Hersha sells Manhattan hotels to Chinese JV partner

Hersha Hospitality Trust (HT-N) has made another move in its capital recycling program with the sale of seven Manhattan hotels through the closing of a joint venture with China-based Cindat Capital Management Ltd. The price tag on the 1,087-key group of premium limited service hotels was $571.4 million US.

Commercial Property Executive

Three REITs with juicy returns

REITs, which usually pay out monthly distributions, are excellent income investments for income investors. Income investors should consider Slate Office REIT (SOT.UN-T), Slate Retail REIT (SRT.UN-T), and Dream Industrial REIT (DIR.UN-T), which offer yields of seven to nine per cent today.

Motley Fool

Receive monthly income from Cominar

Cominar (CUF.UN-T) is one of the largest diversified REITs in Canada. At the end of 2015, it owned 566 properties totaling 45 million square feet of gross leasable area with $8.2 billion of assets. Cominar REIT owns, manages, and operates a portfolio of retail, office, industrial, and mixed-use properties, and it pays one of the highest yields on the TSX today.

Motley Fool

Retail

Loblaws, Shoppers could sell marijuana: Weston

Galen G. Weston wants in on the medical marijuana business. Weston, the head of the country’s largest drugstore and grocery chain, said Thursday pharmacists are well-positioned to dispense the drug in a safe manner. “We’re an industry that is extremely effective at managing controlled substances,” said Weston, Loblaw’s (L-T) president and executive chairman.

Toronto Star

Couche-Tard issues senior unsecured notes

Alimentation Couche-Tard Inc. (ATD.A-T) announced today it has issued €750 million ($1/1 billion Cdn) principal amount of 1.875 per cent senior unsecured notes due 2026. The notes are direct unsecured, unsubordinated obligations of Couche-Tard and rank pari passu with all other outstanding unsecured and unsubordinated indebtedness of Couche‑Tard.

Canada Newswire

Mid-sized pet store chains being forced out

Pet owners looking for bargains or specialty products and services are pushing out mid-size chains from an otherwise growing market. Take for instance PJ’s Pets and Pets Unlimited, which operate under separate banners but are one company. Late last month it announced it was closing 27 of its 39 Canadian stores.

Winnipeg Free Press

Hugo Boss considers closing some stores

Hugo Boss AG, the embattled German fashion retailer, reported the biggest decline in quarterly profit in at least six years and pledged to trim the store network it built up over the past decade to cut costs. The company may shut shops and will save another $58 million US this year by reducing costs and rents.

Bloomberg – Reuters

Restaurants and Eateries

Latest first-quarter reports:

* Second Cup Ltd., (SCU-T), Canada Newswire

Infrastructure

Wetland is quantifiable infrastructure

Nature can be a handy thing for humans to have around. And, sometimes, when we simply get out of its way and let it do its job, the results can be astounding. Take disaster risks, for example. After the 2004 Indian Ocean tsunami, evidence accumulated that where coastal mangrove swamps were least degraded, disaster impacts were often less severe.

Globe and Mail

Human Resources

Leon KFC’s shrewd Canadian steward

Even though George Cohon and Jack Leon, presidents of McDonald’s Canada and Kentucky Fried Chicken’s Canadian operations, respectively, were good friends in the 1970s and 1980s, they never talked shop. When they got together for lunch, they didn’t go to each other’s restaurants, and they never talked about food. Instead, they discussed giving back to the community.

Toronto Star

Other